This is a good time to remember that the stress test on USDC was less than remembered. At the time, MakerDAO held more than the amount Circle had in SVB. So even a 0% recovery by Circle, Maker would have been the bag holder (bc it had no quick or easy way to redeem at the time). Everyone had a slow, large holder to front run, effectively giving them protection.
So I actually don’t think this is comparable at all to 2023. In that case, Circle’s chosen counterparty failed. In this case, a local market got discombobulated without any decision making by Ethena.
USDC depegged over the weekend and circle had literally 0 comms
people were left guessing how circle might socialise losses
if redemptions were open throughout this is actually even more scary, because the theory that if SVB went down, the last person would be left holding the bag, would be correct (hence the collective rush to sell down USDC)
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